What is the amount of the margin call

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Assume an initial margin requirement of 50 percent and a maintenance margin of 30 per- cent. An investor buys 100 shares of stock on margin at $60 per share. The price of the stock subsequently drops to $50.

a. What is the actual margin at $50?

b. The price now rises to $55. Is the account restricted?

c. If the price declines to $49, is there a margin call?

d. Assume that the price declines to $45. What is the amount of the margin call? At $35?

Reference no: EM133130529

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